State Bank shifts some key functions

State Bank shifts some key functions KARACHI: The State Bank of Pakistan (SBP) has shifted some of its important functions to Lahore in order to enhance the efficiency of the Banking Services Corporation (SBP-BSC).

“Out of 11 departments of the SBP-BSC, five departments dealing with currency management, government banking, internal audit, foreign exchange operations and implementation of Development Finance Group (DFG)-related policies are being partially relocated to these regions for greater operational efficiency and logistic ease,” said a press release issued by the SBP on Tuesday.

The SBP-BSC was established as a wholly owned subsidiary of the central bank in January, 2002, under the SBP Banking Services Corporation Ordinance 2001. As a subsidiary, the SBP-BSC caters to primarily operational and logistic work. With its head office in Karachi, its functions are being managed through a network of 16 offices spread across major cities.

The corporation has been entrusted with operational responsibilities related to currency distribution, foreign currency operations and banker to the governments. In addition, it is also entrusted with the dissemination and implementation of policies on behalf of the DFG of the SBP alongside the provision of non-core services to the central bank, including medical, engineering and security services.

“An analysis of the existing work quantum of the SBP-BSC reflects that its performance at times is affected due to the fact that a majority of its operations requiring immediate decision-making by senior management is being performed at field offices located in central and north regions,” said the SBP.

To improve organisational performance, enhance effectiveness of internal controls, ensure consistency in decisions and bring about efficiency in operations, the management of the SBP-BSC has decided to carry out some of its functions from central and north regions.

“The work of currency management is already being performed through Issue Offices in Lahore, Peshawar and Quetta in addition to Karachi. Likewise, foreign exchange operations and Development Finance Support Department (DFSD) have their units functioning at these offices,” said the SBP.

“A sizeable proportion of these departments will be retained in Karachi to meet the needs of the southern market. It will be pertinent to mention here that the SBP will continue to function from Karachi and none of its department is being shifted to any other city,” said the SBP.